One of the principal challenges any organization encounters is how to know when it may be strategically beneficial to push the envelope on an internal logistics system automation project. First you need to ask yourself and your organization some tough questions. Here we will focus on the top five questions to ask: Are the desired benefits a) strategic overhaul or b) process improvement in nature? Exactly what benefits will the project provide (increased efficiency, reduced overhead costs, less floor space used, increased accuracy, increased productivity, etc.)? What are the rewards and the return-on-investment (ROI)? What are the potential risks, costs and downside? Can I diminish the potential risks and still reap the rewards? If you are looking at increasing efficiencies and productivity to provide strategic benefits such as keeping up with or surpassing your competitors, or reducing costs to offer more value added benefits to your customers such as free shipping, or utilizing existing floor space and labor more resourcefully to increase product lines, SKUs or services, it often makes sense to risk pushing the envelope by automating. Process improvements optimize labor efficiency and increase accuracy. Space and labor optimization can be used as a framework for meeting a company’s projected goals. Process improvement can eliminate inflexible or unreliable operations and redundancies. By eliminating inefficient layouts, process improvements reduce the time it takes for items or orders to be assembled, picked, packed, and/or shipped. Process improvement can also eliminate overly complex procedures and can reduce the amount of inventory required to meet production needs or to fulfill orders in distribution operations. Increasing efficiencies decrease the cost of production and overhead. Reducing costs, improving productivity, eliminating waste – the results can be an effective strategy for organizational growth and success. How inventory and product moves through your facility, how SKUs […]